South Bow (SOBO) and Its Rivals Financial Contrast

South Bow (NYSE:SOBO) is one of 21 public companies in the “Pipelines, Except Natural Gas” industry, but how does it weigh in compared to its rivals? We will compare South Bow to related companies based on the strength of its earnings, dividends, institutional ownership, valuation, profitability, risk and analyst recommendations.

Dividends

South Bow pays an annual dividend of $2.00 per share and has a dividend yield of 8.3%. South Bow pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Pipelines, Except Natural Gas” companies pay a dividend yield of 7.5% and pay out 116.5% of their earnings in the form of a dividend. South Bow is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares South Bow and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
South Bow	N/A	N/A	13.78
South Bow Competitors	$10.59 billion	$805.98 million	14.99

South Bow’s rivals have higher revenue and earnings than South Bow. South Bow is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares South Bow and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Bow	N/A	N/A	N/A
South Bow Competitors	29.09%	23.03%	9.57%

Analyst Recommendations

This is a summary of recent ratings for South Bow and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Bow	2	3	1	2	2.38
South Bow Competitors	166	1636	1798	169	2.52

South Bow presently has a consensus price target of $25.00, indicating a potential upside of 3.69%. As a group, “Pipelines, Except Natural Gas” companies have a potential upside of 18.64%. Given South Bow’s rivals stronger consensus rating and higher probable upside, analysts plainly believe South Bow has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

50.2% of shares of all “Pipelines, Except Natural Gas” companies are held by institutional investors. 2.6% of shares of all “Pipelines, Except Natural Gas” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

South Bow rivals beat South Bow on 10 of the 13 factors compared.

About South Bow

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.